The First meeting of the Malaysia-Turkey Free Trade Agreement (MTFTA) was held in Ankara on 31 May-1 June 2010.

A total of nine (9) rounds of MTFTA negotiations were held with the final or concluding round held on 13-15 January in Ankara, Turkey. The Agreement later was signed by YB. Dato' Sri Mustapa Mohamed Minister of International Trade and Industry, Malaysia and Hon. Nihat Zeybekci, Minister of Economy of The Republic of Turkey on 17 April 2014 in Ankara, Turkey.

MTFTA came into force on 1 August 2015.

Malaysia was able to lock-in tariff preferences that were either on par with, or better than, those previously granted under Turkey’s Generalised System of Preferences (GSP), which were no longer available for Malaysia, beginning 1 January 2014. As such, with the signing and subsequent entry into force of MTFTA, Malaysian exporters can continue to gain preferential market access into and also remain competitive in the Turkish market.

Total exports of merchandises increased by 89.0% to RM7.17 billion (US$1.72 billion) from RM3.80 billion (US$0.95 billion) in 2015.

Total imports of merchandises decreased by 31.2% to RM1.24 billion (US$300.36 million) from RM1.81 billion (US$473.82 million) in 2015.

Major exports to Turkey in 2016:

Palm Oil and Palm-Based Products

Manufactures of Metal

Textiles, Apparels and Footwear

Chemicals and Chemical Products

Electrical and Electronic Products

Major imports from Turkey in 2016:

Textiles, Clothing & Footwear

Machinery, Equipment & Parts

Chemicals & Chemical Products

Petroleum Products

Fruits and Other Agricultures

SCOPE

Areas covered under MTFTA include:

Initial Provisions

General Definitions

Trade in Goods

Rules of Origin

Customs Procedures and Cooperation

Sanitary and Phytosanitary Measures

Technical Barriers to Trade

Trade Remedies

Economic and Technical Cooperation

Transparency

Institutional Provisions

Dispute Settlement

General Exceptions

Final Provisions

TRADE IN GOODS

The Agreement outlines commitments from both countries on liberalization of trade in goods. Malaysia and Turkey will progressively reduce or eliminate tariffs on substantial number of products traded between both countries.

The FTA will be realised over a period of 8 years. Turkey will grant preferential market access to Malaysian exports. Turkey will eliminate duties on 85.89% of tariff lines.

Malaysia’s Commitment

Malaysia's commitment involves tariff reduction/elimination on 98.86% from the total tariff lines based on modalities as follows:

Modalities

Description

Tariff lines(HS2007)

%

Fast Track
(FT)

Immediate elimination on 1 August 2015

7317

70.38

Normal Track
(NT)

Gradually reduced and eliminated on 1 January 2018

1040

10.00

Sensitive Track (ST)

Gradually reduced and eliminated on 1 January 2020

1725

16.59

Highly Sensitive Track (HST)

Gradually reduced and eliminated on 1 January 2023

196

1.89

Turkey’s Commitment

Turkey will eliminate duties on 85.89% of tariff lines based on modalities as follows:

Modalities

Description

Tariff lines(HS2007)

%

Fast Track
(FT)

Immediate elimination on 1 August 2015

8309

68.70

Normal Track
(NT)

Gradually reduced and eliminated on 1 January 2018

302

2.50

Sensitive Track (ST)

Gradually reduced and eliminated on 1 January 2020

877

7.25

Highly Sensitive Track (HST)

Gradually reduced and eliminated on 1 January 2023

898

7.43

Upon entry into force of the FTA, Turkey import duties by 30% for palm oil products such as Crude Palm Oil, Processed Palm Oil, Crude Palm Kernel Oil and Processed Palm Kernel Oil. No further reduction will be given for these products. Including palm oil-based products, one off tariff reduction given to 322 tariff lines (2.67%) agricultural and fisheries products. Tariff for another 970 tariff lines (8.02%) will be at locked in at current rate for Malaysia. In essence, only 3.44% of Turkey’s tariff lines are excluded from the Agreement.

For textiles, Malaysian exporters are given immediate elimination of additional customs duties (ACD) which these safeguard duties are imposed over and above the MFN duties for selected textile products.

In the case of Malaysia, the elimination of duties by Turkey through MTFTA will compensate for the withdrawal of the GSP benefits previously offered by Turkey until 31 December 2013. Therefore, with the MTFTA, Malaysian exporters can continue to gain market access at preferential duties and remain competitive in exporting to Turkey, offering further advantages to Malaysian exporters.

EXPORT-IMPORT PROCEDURES

Exporting to Turkey

If you are exporting to Turkey, please click this link to check on the preferential duties under MTFTA: